NEWSLETTER of November 26, 2021

The following content has been added at finexpert:

Deloitte
EUROPEAN BANKING TREND RADAR
The unprecedented situation since the COVID-19 pandemic hit Europe has once again highlighted change dynamics, with banks needing to adapt rapidly to new trends and drivers in the market. This has inspired us to set up a systematic process for trend monitoring and evaluation in banking to help market participants navigate uncertainty. In our new series of articles, we will shed light on the key trends and drivers in the European banking market. >more

Horvath & Partners / FINANCE
CFO PANEL HERBST 2021
Digitization and transformation tasks are currently high on the agenda of many companies, show the results of the current FINANCE CFO Panel. For the survey, the editorial team, in cooperation with Horváth, anonymously asked CFOs in Germany about their current assessment of the market; almost 100 CFOs took part. >more

Alix Partners
MID-MARKET DEBT REPORT H1 2021
As Europe recovers past the most damaging phases of the pandemic, debt market activity is buoyant. Appetite for the COVID-insulated sectors continues to thrive, but lenders are now also focusing on businesses transitioning from survival towards growth. >more

ZEW
M&A-REPORT OKTOBER / NOVEMBER 2021
The M&A Report is jointly produced by ZEW and Bureau van Dijk. It provides semi-annual information on current topics and developments of worldwide mergers and acquisitions based on the Zephyr database. Zephyr provides daily updated detailed information on more than one million M&A, IPO and private equity transactions worldwide. >more

IS FINANCIAL GLOBALIZATION IN REVERSE AFTER THE 2008 GLOBAL FINANCIAL CRISIS? EVIDENCE FROM CORPORATE VALUATIONS
Craig Doidge, George Andrew Karolyi, and René M. Stulz
2020
For the last two decades, non-US firms have lower valuations than similar US firms. We study the evolution of this valuation gap to assess whether financial markets are less integrated after the 2008 global financial crisis (GFC). The valuation gap for firms from developed markets increases by 31% after the GFC – a reversal in financial globalization – while the gap for firms from emerging markets (excluding China) stays stable. There is no evidence of greater segmentation for non-US firms cross-listed on major US exchanges and the typical valuation premium of such firms relative to domestic counterparts stays unchanged. However, the number of such firms shrinks sharply, so that the importance of US cross-listings as a mechanism for market integration diminishes. >more

SECURED CREDIT SPREADS AND THE ISSUANCE OF SECURED DEBT
Efraim Benmelech, Nitish Kumar, and Raghuram G. Rajan
2021
We show that after accounting for selection, credit spreads for secured debt issuances are lower than for unsecured debt issuances, especially when a firm’s credit quality deteriorates, the economy slows, or average credit spreads widen. Yet firms tend to be reluctant to issue secured debt when other forms of financing are available, as we demonstrate with an analysis of security issuance over time and in particular around the COVID-19 pandemic shock in the United States in early 2020. We find that for firms that are rated non-investment grade and that have few alternative sources of financing in difficult times, the likelihood of secured debt issuance is positively correlated with the spread between traded unsecured and secured bonds. It is not correlated for firms that are investment grade. This pattern of issue behavior is consistent with theories that see collateral as a form of insurance, to be used only in extremis. >more